The GOLD PRICE fell $10 per ounce after reaching almost $1400 for the 5th time this week in London trade Friday morning.

Silver held tight around $22.50 per ounce, managing only one-third of gold’s 2.0% gain for the week.

After yesterday’s 7% plunge Japan’s stock market bounced, but other Asian equities fell, as did European stocks.

US and UK markets are closed Monday for national holidays.

“There is a floor emerging around $1360,” says a New York dealer’s note, adding that bearish speculators wanting to profit from a fall in the gold price “may be inclined to wait” for a rally to this week’s high of $1414 before adding to their record holdings of short futures contracts.

Japan’s central bank vowed at the start of April to double its balancesheet to nearly $3 trillion by end-2015. The Japanese stock market has gained 29%, but government bonds have fallen sharply, doubling the interest rate on new 10-year borrowing from below 0.4% to more than 0.9% today.

“Pundits in the media, and especially on television, have devoted a great deal of attention to the subject of inflation,” says Koo. “The more people hear about it the more they are inclined to believe it, even if it is not true.”

The private bank and wealth manager is now selling gold from client portfolios, however. Because with gold price “momentum now clearly negative and key technical support broken at $1500, it looks to be an increasingly expensive form of insurance.”

Kleinwort is increasing its allocation to the US Dollar – “a safe haven currency” – because the recent surge in world stock markets have been accompanied by “signs of investor complacency.”

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